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1、International Journal of Business and Social Science Vol. 3 No. 14 [Special Issue – July 2012] 46 Employee Training Effectiveness in Saudi Arabian SME Performance Salem Shiryan

2、School of Management and Information Systems Faculty of Business and Law Victoria University Melbourne, Australia Dr. Himanshu Shee School of Management and Information Systems Faculty of Business and Law Victoria Unive

3、rsity Melbourne, Australia Deborah Stewart School of Management and Information Systems Faculty of Business and Law Victoria University Melbourne, Australia Abstract A skilled workforce is crucial to the success of any

4、 organisation, and quality management is a contributing factor towards the increase or decrease in a company’s profits. In this review of the organisational training literature as it may apply in a Saudi Arabia context

5、, a number of dimensions are considered. Management training is an important aspect of staff training, as leadership qualities and change management drive organisational objectives. Research into further technical and

6、policy training to meet environmental change are required by both managers and employees, whilst updating employees’ job skills is also important. Keywords: Employee training effectiveness, SME performance, Saudi Arabia

7、 Introduction Evaluations of organisational training generally define knowledge transfer by profitability outcomes, including cost reduction and quality assurance. Whilst Hansson (2007), described the relationship betw

8、een training investment and staff turnover, the proposed study follows Hansson?s research through its focus on employees? engagement with the organisation: communications, consensus, and teamwork. By taking a strategic

9、 position to direct employee education and training towards an improved organisational environment, management could therefore achieve greater return, profitability and higher-quality outcomes (Jennex, 2008; 2010). The

10、 research uniquely focuses on employee training as a career-building approach and a means of enhancing performance in Saudi SMEs. Within a traditional society that values leadership, this study seeks to understand empl

11、oyees? engagement with the organisation as evidenced through its training policies. This study used a conceptual management framework to support the research aims, that is, to explore dimensions of management training

12、and development. The hypotheses were framed around organisational training, and the input of senior management to that training to study the relationships between training and organisational performance. The nature of

13、the Saudi workplace is an issue in this study, as the literature reports a lack of national skills that contribute to a low participation rate of Saudis in the labour force, particularly women. Saudi Arabia has therefo

14、re a large number of expatriate workers, and it is possible that their previous experience may skew the knowledge and skills level of SME workplaces. These and associated matters concerning management involvement in tr

15、aining are discussed in this paper. International Journal of Business and Social Science Vol. 3 No. 14 [Special Issue – July 2012] 48 Dresner (2007), presented a comprehensive f

16、ramework for building effective management training and development programs. Involvement of executives in training varies among organisations, depending on management style. Hamzah and Zairi (1996), investigated execu

17、tive involvement in training activities to equip employees with knowledge and skills, including funding to allocate sufficient resources to support the change activities. To some researchers, executive management invol

18、vement means empowerment to effect change, to create an organisational culture for supporting change, and to institute the appropriate reward system and increase communication throughout the organisation. These studies

19、 underlie the importance of training in an organisation. For the purpose of this paper, the executive management?s interest in training extends to the average annual cost per employee, whether the training is aligned

20、to technical competency or corporate goals, and its value to the employee. Incentives for employees are investigated: training is remunerated as part of employment without cost to the employee, and may include performa

21、nce pay if work outcomes change significantly after training. This literature review shows that executive support for training is necessary to maximise organisational performance. Conceptual Framework This study used a

22、conceptual management framework to support the research aims, that is, to explore dimensions of management training and development (figure 1). H1 (a)+ H3+ H1 (b)+ H2 (a)+ H2 (b)+ H1 (c)+ H2 (

23、c)+ Figure 1 Conceptual research framework Coleman (1988) noted that knowledge from management training is used to benefit the firm when it employs the individual?s human capital. The management training approach id

24、entified by Donnelly (1987), is relevant to this study: assessment of organisational needs, resource availability, assessment of job training needs for the individual, and program design. Further, the effects of execut

25、ive commitment and intervention on employee outcomes were explored by Huang (2001), who found that SME management support for training maximises the program value for the enterprise. Kraut et al. (1989), as noted, used

26、 a team sport analogy to design effective management training and development programs. Hypotheses The first set of hypotheses is based on desired training outcomes. These hypotheses set concerned the correlation of de

27、sired training outcomes with each of three parameters: the nature of training, executive involvement in training, and executive motivation. Hypothesis 1 and its derivatives are therefore: ? Hypothesis H1a: Nature of tr

28、aining content positively affects the training outcomes for the organisation ? Hypothesis H1b: Management involvement in training will result in improved training outcomes ? Hypothesis H1c: Management motivation is po

29、sitively associated with training outcomes. The second set of hypotheses is based on firm performance, and its correlation with each of the three parameters: nature of training, executive involvement in training and exe

30、cutive motivation. This set tests whether the results of the first set of hypotheses concerning the desired training outcomes can be further tested through changes to the firm?s productivity. This will link the tests o

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